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Greenhouse gases: not just a bunch of hot air

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What's wrong with wind farms?

Fairfax Media can reveal that Environment Minister Greg Hunt has issued the Clean Energy Finance Corporation with new orders that negate the Abbott government's June decree, which prohibited the $10 billion green bank from investing in new wind power projects.

The revelation of the reversal comes after a week in which Mr Abbott was back in the political spotlight, stealing attention from Mr Turnbull's innovation agenda with controversial comments on Islam and terrorism.

The winds of change: renewables are set to give coal a run for its money.

It's the latest in a series of changes Turnbull has made to Abbott policies - including putting debate on increasing the GST back on the table, shelving higher education deregulation and dumping the return of knights and dames honours - but the first in the contentious environmental space.

The move is expected to give the multibillion-dollar wind industry a boost and inject renewed confidence into the renewable sector more broadly.

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Mr Hunt's new investment mandate – dated December 3 and obtained by Fairfax Media – is much more closely aligned with the promises he made to Senate cross-benchers when he was negotiating changes to the Renewable Energy Target earlier this year.

The Abbott government's version – spearheaded by former Treasurer Joe Hockey –went much further than those undertakings, prompting accusations that it was mounting an ideological war on the wind industry.

Under the new mandate, the corporation will be allowed to invest in any wind projects provided they involve "emerging and innovative" technology, although it does encourage it to "focus on offshore wind technologies".

"This recognises that, in many circumstances, the financing requirements for mature and established clean energy technologies such as onshore wind technologies may be met from commercial financing sources," says an explanatory statement that accompanies the new mandate.

While the June decree issued by Mr Hockey and Finance Minister Mathias Cormann never formally came into force because it was not tabled in parliament before the September leadership coup, the Clean Energy Finance Corporation has largely been working within its parameters for the last five months.

The new mandate was finalised less than a fortnight ago after months of consultation with the corporation and industry.

The reversal is already having an effect, with the corporation quietly announcing $67 million in financing last week for what will be Australia's third largest wind farm, at Ararat in Victoria. The project is eventually expected to produce enough electricity to power 120,000 homes a year.

Government sources say the new mandate was studiously crafted to ensure it did not break any promises to anti-wind crossbenchers such as John Madigan and David Leyonhjelm, who believe "infrasound" from wind turbines can cause health problems for nearby residents. Numerous studies have failed to find evidence to support such claims.

Fairfax Media revealed the original ban in July, unleashing a firestorm of public criticism and prompting warnings the government was putting international investment at risk.

The decision was the culmination of months of anti-wind rhetoric from Mr Abbott, who called the turbines "visually awful", and Mr Hockey, who told Sydney radio shock jock Alan Jones he found them "utterly offensive".

Mr Hunt – who was sidelined from the original decision – was given control of the corporation when Mr Turnbull announced his new ministry, paving the way for a softer approach.

The decision should please environmentalists who have so far been disappointed with Mr Turnbull's approach to environmental policy.

Mr Turnbull has kept the Abbott government's Direct Action climate change plan, as well as its comparatively modest emissions reduction targets. He has also been criticised for persisting with the Abbott policy of appointing a wind farm commissioner – at a cost to taxpayers of at least $600,000 – which was another promise to crossbenchers.

Under Abbott, the Coalition twice tried to abolish the Clean Energy Finance Corporation altogether but was blocked by the Senate. The abolition officially remains government policy although senior government sources concede it still has no chance of getting through.

Set up by the Gillard government, the corporation seeks to catalyse investment in all sorts of renewable energy.

It started investing two years ago, making contracted investments of $900 million in its first year. It made new investments of $484 million last financial year, with wind accounting for about 20 per cent of the total mix.